Trading Algorithms

About this course: This course covers two of the seven trading strategies that work in emerging markets. The seven include strategies based on momentum, momentum crashes, price reversal, persistence of earnings, quality of earnings, underlying business growth, behavioral biases and textual analysis of business reports about the company. In the first part of the course, you will learn how to read an academic paper. What parts to pay attention to and what parts to skim through will be discussed here. For every strategy, first you will be introduced to the original research and then how to implement the strategy. The first strategy, Piotroski F -score will be discussed in detail. You will be taught how to calculate the F - Score and how to use this score in a strategy. This is followed by the next strategy, Post earnings announcement drift (PEAD).

Who is this class for: This course is primarily aimed at individual investors and money managers who want to gain the skills required to develop their own trading strategies and make money using them

Created by:  Indian School of Business

• Taught by:  Prasanna Tantri, Senior Associate Director

  Center for Analytical Finance

Basic Info Course 2 of 5 in the Trading Strategies in Emerging Markets Specialization Level Intermediate Commitment The estimated workload for this course is 4 to 5 hours per week Language English How To Pass Pass all graded assignments to complete the course. User Ratings 4.5 stars Average User Rating 4.5See what learners said Coursework

Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.

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Indian School of Business The Indian School of Business has successfully put India on the global map of management education by nurturing young leaders with an understanding of developing economies and the society at large. Through innovations in curricula and pedagogy to reflect the shifting business landscape, the ISB is committed to providing the best venue for management education to meet the growing need to develop young leaders who can manage global challenges.

Syllabus


WEEK 1


Module 1 - Introduction to Trading Strategies and Benchmarks
After completing this module you will be able to understand what market efficiency means. You will be able to list different types of market efficiencies.


2 videos, 2 readings, 1 practice quiz expand

1. Video: Disclaimer
2. Reading: Disclaimer
3. Video: Introduction to Trading Strategies
4. Discussion Prompt: Forms of Market Efficiency
5. Reading: Are markets efficient?
6. Practice Quiz: Practice Quiz

Graded: Quiz 1

WEEK 2


How to read an academic paper
After completing this module you will be able to read and understand an academic paper. You will know what are the important parts of a paper and how to build a trading strategy based on them.


4 videos, 1 reading, 1 practice quiz expand

1. Video: How to read an academic paper - a
2. Video: How to read an academic paper - b
3. Video: How to read an academic paper - c
4. Video: How to read an academic paper - Abstract
5. Reading: How to read and get the most out of a journal article
6. Practice Quiz: Practice Quiz

Graded: Quiz 2

WEEK 3


Module 3 - Trading Strategy 1 - F Score
After completing this module you will understand the Piotroski F Score Strategy and the economic intuition behind it. You also be able to implement the trading strategy.


5 videos, 1 reading expand

1. Video: Piotroski F-Score : Strategy - a
2. Video: Piotroski F-Score : Strategy - b
3. Video: Piotroski F-Score : Strategy - c
4. Video: Piotroski F-Score : Implementation - a
5. Video: Piotroski F-Score : Implementation - b
6. Reading: Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers
7. Discussion Prompt: Financial Ratios

Graded: Quiz 3

WEEK 4


Module 4 - Trading Strategy 2 - PEAD
In this module you will learn a strategy based on Post earnings announcement drift and will be able to implement it.


4 videos, 1 reading, 1 practice quiz expand

1. Video: Piotroski F-Score : Wrap up
2. Video: Post Earnings Announcement Drift (PEAD) - a
3. Video: Post Earnings Announcement Drift (PEAD) - b
4. Video: Wrap up
5. Reading: An Empirical Evaluation of Accounting Income Numbers
6. Discussion Prompt: Short Selling
7. Practice Quiz: Practice Quiz

Graded: Quiz 4